OUTSOURCING
MADE BY : DEEPIKA OJHA
INDEX
Outsourcing
Types of outsourcing
BPO-Business Process Outsourcing
KPO-Knowledge Process Outsourcing
LPO-Language Process Outsourcing
Location Analysis
Outsourcing in India
Reverse Outsourcing
Future Trends in Outsourcing
What is outsourcing ?
Outsourcing refers to the practice of transferring
activities traditionally done within a firm to third
party providers within the country.
Definition :
Outsourcing is a practice used by different companies
to reduce costs by transferring portions of work to
outside suppliers rather than completing it internally.
Outsourcing is an effective cost-saving strategy when
used properly.
Outsourcing - Typologies
People , the facilities , the equipment &
Conventional technology transferred to service provider.
Company buys new services provider (Make Vs
Greenfield Buy)
Problem Solving mentally. Outsource Company
& People both.
Tactical
Structured Outsource , to align with companies
Strategical long terms Process.
Motivation for Outsourcing
Cost-Driven Outsource : Reduce & save cost
Strategy- Driven Outsource: Focus on core-
competencies Functions.
Politically Driven Outsource: Outsource By Public
Organizations.
Outsource Decision Framework
Drivers Vs Risks
Types of outsource
BPO KPO
BUSSINESS KNOWLEDGE
PROCESS PROCESS
OUTSOURCING OUTSOURCING
OUTSOURCE
LPO
LEGAL PROCESS
OUTSOURCING
BPO-BUSINESS PROCESS
OUTSOURCE
Business process outsourcing (BPO) is a subset of
outsourcing that involves the contracting of the
operations and responsibilities of a specific
business process to a third-party service provider.
BPO CATGEGORIES
Back Office Front Office
Back- office Outsourcing : - it includes internal office functions i.e.
HR
Accounting
Finance / Payroll
Front-office Outsourcing:- It includes customer related services i.e.
Tech support
Contact center
marketing
KEY FACTORS-OUTSOURCING
ONSHORE Outsourcing of business done within
companies own country
Outsourcing of business done in
OFFSHORE
outside country
Outsourcing of business done with
NEARSHORE
Companies neighboring
countries
BPO BUSINESS MODELS
BPO SERVICES
Administrative support
Customer relationship management
Document processes
Finance and accounting
HR & training
IPR documentation
Legal Services LPO
Medical transcriptions
Payroll Management
Product Development
Publishing
Research & Analysis
Sales & Marketing
Security
Supply Chain Management
KPO KNOWLEDGE PROCESS
OUTSOURCING
Knowledge process outsourcing (KPO)
describes the outsourcing of core information-
related business activities which are
competitively important or form an integral part
of a company's value chain . KPO requires
advanced analytical and technical skills as well
as a high degree of specialist expertise.
Drivers of KPO:
Increase in specialized Knowledge
Additional Value Creation
Cost reduction
Shortage of skilled labor
Demand of Quality Product
BPO VS KPO
KPO firm require more skilled labors than BPO.
Experts works in KPO keeps learning & have more incomes than BPO
In KPO Customer is amid the whole execution process
KPO-Benefits Vs Risk
KPO SERVICES
Research & Development
Financial Consultancy and Services
Advanced Web Applications
Business and Technical Analysis
Learning Solutions
Animation & Design
Business & Market Research
Pharmaceuticals and
Biotechnology
Medical Services
Writing & Content Development
Legal Services
Intellectual Property (IP) Research
Data Analytics
Network Management
Training & Consultancy
LPO LEGAL PROCESS
OUTSOURCING
Legal outsourcing, also known as legal process
outsourcing (LPO) refers to the practice of a law firm or
corporation obtaining legal support services from an
outside law firm or legal support services company
(LPO provider).
Legal Process Outsourcing (LPO) is the industry in
which in-house legal departments or organizations
outsource legal work from areas where it is costly to
perform, such as the United States or Europe to areas
where it can be performed at a significantly decreased cost,
primarily India. Legal Process Outsourcing is a high end
industry that has been growing rapidly in the recent years.
Why Lpo?
Legal process outsourcing or LPO is the exporting of legal services to
low-wage markets overseas. An increasing number of companies,
large and small, are outsourcing legal work to destinations across the
globe.
A number of factors have fueled the legal process outsourcing trend,
including:
Globalization
Economic changes and the rising cost of legal services
The growth of the Internet
Increased automation of legal processes
Developments in data security
New technology tools
Cost-Saving biggest attraction
Lpo Methods
LPO Services
Contract Drafting Services & Contract Monitoring /
Management
Document review / drafting, electronic discovery
Medico-Legal Support Services
Litigation- Document Management
Bankruptcy Filings , Pleadings & Documentation
Legal Research/ outsourcing/publication
Paralegal Support Services
Patent drafting
Simple legal filings
Proof reading
Legal billing activities like preparation of invoices, collation
of time sheets etc.
Intellectual property research--substantive and administrative
Administrative and secretarial activities like following up
with clients, etc.
Outsourcing Services
Location Analysis
Countries which are attracting for
Outsourcing Destination:
38%
40%
35%
30%
25%
20%
15%
10% 6%
5% 5% 5% 5% 5%
0% 4% 4% 4%
Outsourcing Destination
Outsourcing In India
Why India most Preferred?
India produces over 75,000 IT graduates and 20 lacs
Labor Pool English-speaking graduates annually.
Typical salaries range from $5,000 to $12,000 for
technical staff, while back-office salaries range from $3,500 to
Cost Benefits
$7,500.
The government favors IT foreign ownership and
Government
imposes no export taxes.
Policies
In India with redundant telecom and utility
infrastructure, there is very good reliability within India's special
Infrastructure
IT parks.
In India Application development, maintenance,
Knowledge full /
financial processing. Experts see India becoming a hotbed for
Expertise
more critical analytical jobs.
Top Outsourcing IT Companies
KPO
BPO LPO
24 / 7 Customers
Wipro BPO Bodhi Global
APTARA Services (P), Ltd.
(TECHBOOKS) Tata Consultancy Clutch Group.
Evalueserve Services(TCS) Cobra Legal
Solutions, LLC.
HCL BPO CPA Global Ltd.
EXL Service
IBM DAKSH Integreon Managed
Genpact
Solutions, Inc.
ACCENTURE
Pangea3
Mindcrest.
WNS Global COGNIZANT
Services Trustman
Firstsource
ICICI OneSource Solutions
SWOT Analysis in India
Strength Weakness Opportunities Threats
BPO and Call Competition for
Solid History of Centers Resources
software development Infrastructure Over Promise/Under
Cultural Differences Expansion of Deliver
English Proficiency Existing
Government Support Distance from US Relationships Rising Costs
Feud over Pakistan Emerging Chinese Competition from
Process and Quality Market Other Countries
Focus Legal System Indian Domestic Corruption, Piracy,
Skilled, Educated Market Growth Trust
Resources
Entrepreneurialism
Reverse Outsourcing
Reverse Outsourcing is the latest trend in outsourcing. Now ,those
countries companies which are earlier chosen for outsourcing like India
& other Asian countries will now create jobs in the western countries
This phenomenon which is gathering pace in recent times is known as
Reverse Outsourcing or the trend of Indian ITES and BPO companies
opening offices in the US and Europe to outsource there work some are
TCS
WIPRO
HCL
Outsourcing: Whos Benefit?
Even the harshest
critics of
outsourcing agree
that it can benefit
the firm itself; after
all, the firm
wouldnt choose
buying over
making unless it
saved money.
Future Direction -
outsourcing
High Competition market
More offshoring outsourcing
More nearshore outsourcing
In Bpo:
Cost savings is one of the most important drivers now.
Information security, execution capability and financial
stability are important considerations while selecting a
vendor.
Latest trend of offshore insourcing , in which firms establish
their own offshore captive centers. These captive centers are
generally shared service centers and allow the firms to retain
control over the processes.
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